JPMorgan Chase, Wells Fargo Shares Surge As US Banks Beat Wall Street Expectations

JPMorgan Chase shares are up nearly 5 after the banking giant posted surprising strong Q3 earnings results.

Chase reported a 3 increase in net interest income (NII), beating expectations for a decline.

NII is the difference between revenue generated from a bank’s interest-bearing assets and its expenses for paying out interest-bearing liabilities.

JPMorgan’s earnings per share hit $4.37, significantly higher than Wall Street expectations, due in part to higher investment banking fees. Revenue reached $42.65 billion, up 7 year-over-year.

Assets under management jumped 23 to $3.9 trillion, while the bank boosted its provisions for credit losses to $3.1 billion, a $1.38 billion increase from Q2.

Meanwhile, Wells Fargo’s stock is up 6 after the bank announced NII decreased by 11, slightly worse than expected.

Earnings per share dropped 13.5 to $1.42, slightly beating expectations.

The bank’s Corporate and Investment Banking revenue was flat year-over-year, while the Wealth and Investment Management division posted a 5 increase.

Revenue reversed nearly 2 to $20.37 billion, below forecasts for $20.4 billion.